The Philippine Amusement and Gaming Corp. (PAGCOR), that country’s state-run gaming operator and regulator, posted PHP55.05 billion (US $1 billion) in income from gaming operations in 2022, up 68.7 percent over 2021.
According to Asia Gaming Brief, PAGCOR recorded PHP58.96 billion (US$1.07 billion) in income for the period, up 66.15 percent, for a profit of PHP4.44 billion (US$81.4 million), up almost 2,084 percent.
Though the figures reflect a strong rebound from the pandemic years, they fall well short of the PHP9.65 billion (US$176.77 million) in profit made in 2019, following PHP31.79 billion (US$581.96 million) in 2018.
Buoyed by the rebound, the government under President Ferdinand Marcos Jr. has set ambitious goals for tourism in 2023, hoping to attract 5 million foreign visitors. That would be almost twice the 2.6 million people who visited in 2022, but is much less than the 8.26 million international visitors to the nation in 2019 (of those, AGB reported, 1.74 million came from China).
Such an increase in tourism could put the Philippines on track for 6.5 percent growth in gross domestic product in 2023, and place it at the top of the list of fastest-growing ASEAN economies.
However, not everything’s coming up roses, as the regulator continues its battles with the country’s Offshore Gaming Operators (POGOs).
In a statement issued on February 1, the Philippine Amusement and Gaming Corp. (PAGCOR) said it will “not sit idly in the face of … injustices” associated with the country’s Philippine Offshore Gaming Operators (POGOs). That statement followed another in which the state-run regulator pledged to “nurture” the growth of the controversial segment.
PAGCOR said it “denounces these criminal acts,” which include illegal detention and kidnapping for ransom, with lurid reports of people arriving at job interviews only to be abducted by POGO representatives and even “sold” to other operators in the industry.
The regulator insists that PAGCOR-related crime is under control, with no reported incidents in at least three months.
According to GGRAsia, the Philippine National Police say that POGO-related crimes rose from zero in 2017 and 2018 to nine in 2019 to 42 in 2021 and 40 in 2022. But PAGCOR reiterates that it’s working with several law enforcement agencies to detect and shut down illegal operations, adding that if any of its POGO licensees are “found guilty of engaging in criminal acts, the state-run gaming agency will not hesitate to impose sanctions and penalties, as provided by the law.”
However, of more than 100 POGO-linked cases since 2019, only 35 have been prosecuted and only one resulted in an actual conviction, as reported by Inside Asian Gaming.
In other comments, PAGCOR said “gaming operations—including offshore gaming—contribute significantly to government revenues, [but] they must not be used as a vehicle for abuse and injustices. As the country’s gaming regulator, PAGCOR condemns these dreadful acts and will ensure that the local gaming industry will maintain the integrity of its operations.”
At this point, the public may be growing skeptical. Philippine Senator Sherwin Gatchalian recently cited a poll indicating that 58 percent of those surveyed disapprove of POGOs and consider them harmful to society. Other senators have called for an end to the offshore operations, but PAGCOR has opted to “nurture this industry as it believes it has much more to contribute to the Philippine economy and nation-building.”
The debate about POGOs—which serve offshore gamblers and mostly employ foreign workers—has been underway since their inception in 2016. In March 2020, Senate Minority Leader Franklin Drilon slammed POGOs for their alleged association with money laundering and prostitution.
“I am disappointed with the position of PAGCOR that they are in favor of POGO in our shores because of the income we earn,” he said at the time. “That position is shortsighted. The social problems that POGO has brought to our country is not worth the regulation fees you get from PAGCOR. Let me tell that to your face.”
The Movement for Restoration of Peace and Order says tolerance of POGOs by the regulator “serves only as a message to the criminal involved that they can continue their criminal activities with impunity.”
One extremely controversial facet of offshore gambling in the Philippines is known as eSabong, or online cock fighting. The Philippine National Police (PNP) want the government to classify eSabong as illegal gambling altogether.
According to the Philippine News Agency, PNP General Rodolfo Azurin Jr. says the country’s Anti-Cybercrime Group has asked Congress to sanction any online provider that doesn’t block websites featuring the blood sport.
“It should be noted that eSabong websites hosted outside the Philippines can only be blocked, not taken down, as these sites can continue to operate via a virtual private network,” Azurin noted. “The PNP is having a hard time curbing eSabong because of the technological aspect. It’s a battle of technology. Some people engaged in eSabong are well-financed and their resources are overwhelming, so I think the government should also start beefing up or strengthening its cyber-capability.”
Online cockfights were first suspended last May. In December, the suspension was extended indefinitely due to the disappearance of more than 30 people linked to the activity.
Azurin said 28 people have been arrested in connection with the industry, 102 platforms have been blocked, and 76 others were deactivated.
“Representations have been made with the DICT (Department of Information and Communications Technology) and NTC (National Telecommunications Commission) to take down five active websites that continue to host eSabong games,” he said.
“The PNP is closely monitoring 272 platforms comprising 146 websites, 67 Facebook accounts, 31 Facebook groups, 18 Facebook pages and 10 mobile applications used in eSabong activities,” Azurin continued.
PAGCOR has also been criticized for hiring an unlicensed auditor to manage financial matters relating to POGOs. In 2017, Global ComRCI was awarded a 10-year contract from PAGCOR to oversee POGOs. But it may have falsified a required bank certification to seal the deal. New York-based
Soleil Chartered Bank denies issuing the certification, though one was submitted to authorities in June 2017.
Bank representative Ali Abbas said Global ComRCI does not have an account with the bank and added that the letterhead used in the bank certificate “is not the letterhead used by SCB New York.”
In response, PAGCOR said it’s currently reviewing the auditor’s contract.
